Maximize your retirement savings with a SIPP

What's a SIPP? Questions answered.

A SIPP, or self-invested personal pension, is like a savings account for your retirement where you can choose how to invest your money. It works in a similar way to a regular pension but with more freedom to choose your investments.

How's it different?

With a SIPP, you're in charge of your investments. You can change them whenever you want. Plus, SIPPs offer more investment options than other pensions.

" If you're under 75 in the UK and understand financial markets, or can afford a financial adviser, SIPPs might be good for you."

What can you invest in?

You can invest in things like company shares, investment funds, and even property (though not residential property). Different providers offer different options.

What to consider:

You can decide how much and how often you save. Your contributions are subject to tax relief, which means your contributions are made before tax and NI is calculated.

There are limits on how much you can contribute and how much tax relief you can benefit from. You can read our FAQ’s to find out more.

What are the tax benefits?

A salary sacrifice scheme is an arrangement between you and your employer, where you give up or ‘sacrifice’ a portion of your salary in exchange for other, non-cash benefits.

If you’re exploring ways to boost your pension pot, a salary sacrifice pension scheme is one of the most common options.

How much of your salary you can sacrifice depends on your current contractual arrangement with your employer.

How much should I contribute?

You should take great care when considering the amount, as it affects your future finances in several ways.

Consider both your retirement goals and your pre-retirement goals, such as buying property – for example, a lower salary can reduce your mortgage options.

Can I change the amount I save into my SIPP?

This shouldn’t normally be a problem, but your provider can let you know what your options are.

Can I save a lump sum?

Yes. You can often do this online but you might need to contact your pension provider if you need to complete a form.

Can you have a SIPP and a workplace pension?

Yes, you can have both. If your employer matches any extra contributions you pay into your workplace pension, it’ll normally be better to put your money in there first. That’s because the extra employer contributions help to boost your savings.

Is a SIPP a registered pension scheme?

Yes, SIPPs have been registered pensions since 2006.

Does it affect your allowances?

Yes, just like other pensions, SIPPs affect your lifetime and annual allowances.

Is it right for you?

If you're under 75 in the UK and understand financial markets, or can afford a financial adviser, SIPPs might be good for you. If you have a workplace pension, consider that first. Remember, investments can go down as well as up, so be prepared for that possibility. If unsure, talk to a regulated financial adviser.

At Giant Group we can help discuss your options, for further information, please contact us at hello@giantgroup.com